WikiWord

English

discount rate

noun

Meaning

  1. An interest rate that a central bank charges depository institutions that borrow reserves from it.
  2. The interest rate used to discount future cashflows of a financial instrument; the annual interest rate used to decrease the amounts of future cashflows to yield their present value.

Etymology / origin

No prose etymology has been added yet.

No ancestor words have been linked yet.

Related words

Descendant words

No descendant words have been linked yet.

Sources

  1. DictionaryAPI.dev English dictionary data
discount rate — meaning and etymology | WikiWord